The nuclear factor kappa beta (NFκB) signaling pathway plays an important role in liver homeostasis and cancer development. Tax1-binding protein 1 (Tax1BP1) is a regulator of the NFκB signaling pathway, but its role in the liver and hepatocellular carcinoma (HCC) is presently unknown. Here we investigated the role of Tax1BP1 in liver cells and murine models of HCC and liver fibrosis. We applied the diethylnitrosamine (DEN) model of experimental hepatocarcinogenesis in Tax1BP1 and Tax1BP1 mice. The amount and subsets of non-parenchymal liver cells in in Tax1BP1 and Tax1BP1 mice were determined and activation of NFκB and stress induced signaling pathways were assessed. Differential expression of mRNA and miRNA was determined. Tax1BP1 mice showed increased numbers of inflammatory cells in the liver. Furthermore, a sustained activation of the NFκB signaling pathway was found in hepatocytes as well as increased transcription of proinflammatory cytokines in isolated Kupffer cells from Tax1BP1 mice. Several differentially expressed mRNAs and miRNAs in livers of Tax1BP1 mice were found, which are regulators of inflammation or are involved in cancer development or progression. Furthermore, Tax1BP1 mice developed more HCCs than their Tax1BP1 littermates. We conclude that Tax1BP1 protects from liver cancer development by limiting proinflammatory signaling.